Unit 2 Exercise 1 Fitness Plus

Abstract
Fitness plus is a health and sport club located in Greensboro, North Carolina. This facility provides fitness, recreation and relaxation areas, and also this club sponsors softball, volleyball, and swim teams in city recreation leagues.
Fitness Plus opened its doors in 1995 and during the first years membership was small and the use of the facilities was light. By 1997, membership has grown; therefore, the owners had to expand the club’s facilities. Again, in 2005, the average of members increased to 25 and in this way this growth brought complaints from members about overcrowding and unavailability of equipment. Currently, the club counts with an aerobic room that holds thirty-five people, a weight room with twenty-four nautilus

Has Fitness Plus reached its capacity? According to Krajewski, Malhotra, and Ritzman, “capacity is the maximum rate of output of a process or system” (2015, p. 136). There is no a single capacity measure that suits all situations, that is why capacity can be expressed in terms of output measures or input measures. The output method of capacity is mostly used in individual processes and situations where a firm produces a small number of standardized products or services, in other words, when the variety of products increase in the production mix then output-based capacity measures becomes less useful. In the other hand, input measures are used for low volume and flexible processes and might measure capacity in terms of number of workstations or number of

Fitness Plus wouldn’t only be solving the capacity issue but the YMCA competitors issue as well. YMCA was offering a new full of services facility at a low cost. It is hard to compete when your facility is overcrowded, but developing a new facility will protect Fitness Plus from losing members and even help gain new members.

Conclusion Overall we can see how capacity issues are severe and have to be taken into action as soon as possible. Capacity is very important, since it affect directly the customer satisfaction and the customer service. Fitness Plus was operating approximately 146% capacity. This means the facility was dealing with 46% above the capacity they could handle. Throughout the paper, we analyze the capacity strategies Fitness Plus could perform. With research we discovered that the most suitable strategy would be to open a new facility. Nevertheless, expanding the current facility is a good idea but it only solves the problem for a short period of time, later on Fitness plus would have to encounter this issue again. To expand the current facility takes about four months and it only take two more months to develop a new